Tuesday, August 9, 2016


Keybot the Quant remains long but continues to champ at the bit wanting to flip short. The algo did not print any numbers in the Monday session. JJC shot higher to the 24.90-24.92 called out by the algorithm but could not move above. Isn't is amazing and astounding the algo can call out these key parameters and their levels before they occur? You knew the intraday rally in stocks would roll over since copper did not cooperate, and it did. Copper remains key and futures are trading lower. Watch JJC 24.90 as the bull-bear line in the sand. If bulls push above, then SPX 2200 will be on the table. If copper remains bearish, stocks should roll over to the downside.

The algorithm is in uncharted territory. Keybot has wanted to flip short since last Thursday but the necessary internal parameters will not completely latch to allow the move as yet. Three days is a very long and rare time period for this situation to remain. By now, the algorithm would have typically recommitted to the long side or already flipped short. Markets are very erratic and unstable. If the SPX drops under 2178, Keybot will likely flip short.

For the SPX starting at 2181, the bulls need to push above 2185 to accelerate the upside. The bears need to push below 2178 to accelerate the downside. A move through 2179-2184 is sideways action but is such a tight range that price will likely commit to a breakout or breakdown. Watch copper.

8/14/16; 7:00 PM EST =
8/12/16; 10:00 AM EST =
8/7/16; 7:00 PM EST = +63; signal line is +77 but algorithm remains long

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